EXPLANATORY STATEMENT
Select Legislative Instrument 2012 No. 241
Issued by Authority of the Parliamentary Secretary for Agriculture, Fisheries and Forestry
Primary Industries (Excise) Levies Act 1999
Primary Industries (Customs) Charges Act 1999
Primary Industries Legislation Amendment Regulation 2012 (No. 3)
Legislative Authority
Section 8 of the Primary Industries (Excise) Levies Act 1999 (the Levies Act) and the Primary Industries (Customs) Charges Act 1999 (the Charges Act) provides that the Governor‑General may make regulations prescribing matters required or permitted by those Acts to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to those Acts. The Levies Act and the Charges Act provide for the ability to impose levies and charges, respectively, on horticultural products.
Clause 2, Part 2, Schedule 27 to the Levies Act and Clause 2, Part 2, Schedule 14 to the Charges Act provide that the Primary Industries (Excise) Levies Regulations 1999 (Levies Regulations) and the Primary Industries (Customs) Charges Regulations 2000 (Charges Regulations) and impose levies or charges on primary industry products, respectively.
The national coordinator of the government‑industry partnership for plant biosecurity in Australia is Plant Health Australia (PHA). Schedule 15 to the Levies Regulations and Schedule 10 to the Charges Regulations impose special purposes levies and charges, including PHA levies and charges. Subclause 1 of Regulation 3 of the Levies Regulations defines PHA levy to mean the levy imposed, under Schedule 27 to the Levies Act, to fund PHA. Subclause 1 of Regulation 3 to the Charges Regulations defines HA charge to mean the charge imposed, under Schedule 14 to the Charges Act, to fund PHA. Subclause 1 of Regulation 3 to both the Levies Regulations and Charges Regulations also provide that PHA has the meaning given by the Plant Health Australia (Plant Industries) Funding Act 2002. The rate of PHA levy is fixed by the Levies Regulations and the rate of PHA charge is fixed by the Charges Regulations.
Subclause 15.1 of Schedule 15 to the Levies Regulations and subclause 15.1 of Schedule 10 to the Charges Regulations provide that stone fruit is a leviable and chargeable horticultural product, respectively.
Purpose
The Primary Industries Legislation Amendment Regulation 2012 (No. 3) (the Regulation) reduces the existing research and development (R&D) levy and charge for stone fruit by 0.011 of a cent per kilogram and the existing marketing levy by 0.009 of a cent per kilogram. It also establishes a new PHA levy and charge for stone fruit of 0.02 of a cent per kilogram.
These changes enable the national peak representative industry body for stone fruit, Summerfruit Australia Limited (SAL), to meet its financial contribution to PHA on stone fruit. The Regulation redistributes R&D and marketing levies and charges payable in relation to stone fruit. It does not change the overall amount of levies and charges payable by producers.
PHA membership, particularly the ability to remain signatories of the Emergency Plant Pest Response Deed, provides valuable protection for industry and individual stone fruit growers. The Regulation is in the best interest of stone fruit growers.
Consultation
Subclause 6(8) of Schedule 15 to the Levies Act and subclause 5(5) of Schedule 10 to the Charges Act provide that, before the Governor-General makes regulations for the purpose of prescribing a R&D charge, the Minister must take into consideration any relevant recommendation made to the Minister by the industry services body. Horticulture Australia Limited (HAL) is the declared industry services body for stone fruit at the time of making the Regulation (Clause 1 of Schedule 15 to the Levies Act, Clause 1 of Schedule 10 to the Charges Act, and Section 9 to the Horticulture Marketing and Research Development Services Act 2000). The industry services body may consult with the eligible industry body for the particular product or class of products affected by the Levies and Charges Regulations. The Minister has taken into consideration the recommendation made by HAL in consultation with SAL in making the Regulation.
For a new charge to be imposed or for a charge to be amended, industry (generally through its representative body) must demonstrate that the Australian Government Levy Principles and Guidelines have been complied with. This includes demonstrating that sufficient consultation has been undertaken with all sectors of the potentially affected industry or current charge payers, and that there is industry support for the new charge or change in charge rate. SAL’s submission of 9 May 2012 to the Department of Agriculture, Fisheries and Forestry, further information received on 12 June 2012 and the correspondence received from HAL on 7 June 2012 indicate that there is widespread support for the amendments to R&D and marketing levy and charge rates and the establishment of a PHA levy and charge amongst members of the stone fruit industry.
The Office of Best Practice Regulation was consulted in the preparation of the Regulation (ID 13966).
The Regulation is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in the Attachment.
Details of the Primary Industries Legislation Amendment Regulation 2012 (No. 3)
Section 1 – Name of Regulation
This Section provides for the title of the Regulation be Primary Industries Legislation Amendment Regulation 2012 (No. 3).
Section 2 – Commencement
This Section provides for the Regulation to commence on 1 January 2013.
Section 3 – Amendment of Primary Industries (Excise) Levies Regulations 1999
This Section provides for Schedule 1 to amend the Primary Industries (Excise) Levies Regulations 1999 (Levies Regulations).
Section 4 – Amendment of Primary Industries (Customs) Charges Regulations 2000
This Section provides for Schedule 2 to amend the Primary Industries (Customs) Charges Regulations 2000 (Charges Regulations).
Schedule 1 – Amendments of Primary Industries (Excise) Levies Regulations 1999
Item 1 amends subclause 15.3 of Schedule 15 to the Levies Regulations by substituting the rate of levy for stone fruit marketing of 0.45 cents per kilogram with 0.441 cents per kilogram. This represents a reduction of 0.009 of a cent per kilogram.
Item 2 amends subclause 15.4 of Schedule 15 to the Levies Regulations by substituting the rate of levy for stone fruit research and development of 0.55 cents per kilogram with 0.539 cents per kilogram. This represents a reduction of 0.011 of a cent per kilogram.
Item 3 inserts a new PHA levy for stone fruit under subclause 15.5A of Schedule 15 to the Levies Regulations. The new PHA levy for stone fruit is 0.02 of a cent per kilogram and payable by the producer of the stone fruit.
Schedule 2 – Amendments of Primary Industries (Customs) Charges Regulations 2000
Item 1 amends subclause 15.3 of Schedule 10 to the Charges Regulations by substituting the rate of charge for stone fruit marketing of 0.45 cents per kilogram with 0.441 cents per kilogram. This represents a reduction of 0.009 of a cent per kilogram.
Item 2 amends subclause 15.4 of Schedule 10 to the Charges Regulations by substituting the rate of charge for stone fruit research and development of 0.55 cents per kilogram with 0.539 cents per kilogram. This represents a reduction of 0.011 of a cent per kilogram.
Item 3 inserts a new PHA charge for stone fruit under subclause 15.5A of Schedule 10 to the Charges Regulations. The new PHA charge for stone fruit is 0.02 of a cent per kilogram and payable by the producer of the stone fruit.
Attachment
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Primary Industries Legislation Amendment Regulation 2012 (No. 3)
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The Primary Industries Legislation Amendment Regulation 2012 (No. 3) amends the Levies and Charges Regulations by:
- Substituting the levy rate and charge for stone fruit research and development of 0.55 cents per kilogram with 0.539 cents per kilogram, which is payable by the producer of the stone fruit.
- Substituting the levy rate and charge for stone fruit marketing of 0.45 cents per kilogram with 0.441 cents per kilogram, which is payable by the producer of the stone fruit.
- Inserting a new clause that provides for the new Plant Health Australia (PHA) levy and charge of 0.02 of a cent per kilogram, which is payable by the producer of the stone fruit.
The amendment enables Summerfruit Australia Limited to meet future increases in PHA annual subscription fees. The overall amount of levy and charge collected will not change.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
The Hon. Peter Douglas Sidebottom MP
Parliamentary Secretary for Agriculture, Fisheries and Forestry